Transforming emission-intensive sectors is one of the great benefits behind green hydrogen. After analysing how this energy vector will redefine the metallurgical industry’ s value chain, making it more sustainable, this time we are covering the impact of renewable hydrogen on the chemical sector, which has become one of the most decisive players in this transition.
The chemical industry, according to data from the National Statistics Institute (INE), is one of the industrial branches with the highest energy consumption due to its high demand for electricity and gas. It consumes 15% of the national total, including the manufacture of products such as fertilisers, plastics, paints and medicines.
The sector therefore faces the challenge of reinventing its production processes with no competitiveness loss. In this regard, green hydrogen is emerging as a catalyst for this transformation. But what exact role is it playing?
The chemical industry has been using hydrogen for decades. However, it has traditionally obtained it through natural gas reforming—a carbon-intensive process that generates around 10 tonnes of CO₂ for every tonne of hydrogen produced, according to the International Energy Agency (IEA). Conversely, electrolysis allows hydrogen to be obtained with no direct emissions provided it is powered by renewable energy.
Replacing grey hydrogen with green hydrogen would allow companies to meet climate targets without compromising their operations
Hydrogen is essential in processes such as ammonia production, methanol, fertilisers, resins, and hydrocarbon refining. In the case of Spain, the Spanish Chemical Industry Federation (FEIQUE) estimates that the sector represents around 11.6% of industrial GDP, making it the second largest exporter of the Spanish market. It is also an industry that directly employs 240,100 people, and up to 816,200 people if indirect and induced employment is taken into account.
Replacing grey hydrogen with green hydrogen would allow companies to meet climate targets without compromising their operations or relying on technologies that are not mature yet.
There are two main ways in which hydrogen can play a key role within the primary chemical manufacturing process:
Let’s look at it in more detail. And let’s look at concrete examples that show how this is already happening.
In many industrial chemical reactions, hydrogen is a key ingredient. The problem is that nowadays, most of that hydrogen is produced from natural gas in a process that emits CO₂. This is known as grey hydrogen—what’s the solution? Replacing it with hydrogen with lower emissions, such as electrolytic hydrogen, generated with renewable electricity and water.
Replacing grey hydrogen used in chemical production with hydrogen with lower emissions would have a positive impact on sustainability
What would happen if all chemical industries that currently use hydrogen as a feedstock switched to renewable hydrogen? It is estimated that total emissions from the production of primary chemicals could be reduced by more than 30%. This is not an insignificant number.
Another way to reduce emissions is easier to understand: changing the fuel. Today, many chemical plants use natural gas to generate heat. The alternative would be to use hydrogen, which only produces water vapour waste.
This change can be addressed in a number of ways. Some facilities could replace their heaters with more efficient or electrified technologies, such as heat pumps or electric heaters. But when it comes to high temperatures—such as those required for many industrial chemical reactions—electrification is not always feasible or affordable. This is where hydrogen stands out again.
Using hydrogen as a process fuel instead of natural gas can radically change the environmental impact of these industries. Although the initial investment to retrofit or upgrade equipment can be significant, the benefits in terms of emissions are enormous. Moreover, in some cases, this is the only realistic option in the short term to decarbonise thermal processes that are difficult to electrify
Spain is among the countries with the largest deployment of electrolysis projects: It drives 20% of the projects underway in Europe
Spain is consolidating its position as one of the most important countries in the development of renewable hydrogen worldwide. According to the Hydrogen Insights report by the Hydrogen Council and McKinsey, Spain is among the countries with the largest deployment of electrolysis projects, along with India, Taiwan and Sweden. At the European level, the IEA highlights Spain in terms of energy transition, which is driving 20% of the projects launched within the continent.
The public framework has been key to mobilising this influx of projects. In 2023, the Spanish government updated the National Integrated Energy and Climate Plan (PNIEC 2023-2030): a commitment to renewable hydrogen with targets of 12 GW of electrolysers to produce green hydrogen and 19 GW of self-sufficiently produced energy consumption. This update also includes an ambitious target for renewable fuels of non-biological origin in the industry, rising from 25% to 74% by 2030.
Data from the Ministry for Ecological Transition and the Demographic Challenge indicate that hydrogen consumption in Spain is around half a million tonnes per year—mainly grey hydrogen—used as a raw material mainly in refineries (around 70 %) and chemical product manufacturers (25 %).
